CCUL Reacts to Veto of Data Security Legislation

SACRAMENTO, Calif. – Days after California Gov. Arnold Schwarzenegger vetoed legislation designed to hold retailers responsible for protecting consumer information, representatives from the California CU League said the veto missed the point. Bob Arnould, the CCUL’s EVP of government affairs, told the Credit Union Journal “Business costs were cited, but it is hard to tell the real motivations for the veto. It would not have raised costs unfairly,” he asserted. “What is not fair is 40% of retailers have gone out and updated their security, while 60% of retailers are data security scofflaws. Yes, it costs money to update data security, but if businesses don’t, they put personal information in the hands of identity thieves.” The bill began in the California Assembly and eventually passed both the state’s Assembly and Senate by large margins. The legislation was opposed by the California Bankers Association and other groups. The CCUL said the bill would have addressed three deficiencies the credit union movement sees in California’s existing data breach notification law. “The legislature comes back in session in 60 days and we’ll be ready for them. We’ll be back!” quipped Arnould.